The board of the Metropolitan Transportation Authority has approved a $32.5 billion, five-year capital plan. It increases financing for expansion projects such as a Long Island Rail Road track and electronic tolls on bridges and tunnels but provides little for improving subway service. The system has been plagued by delays, which many blame on insufficient funding. [The New York Times]

Plus: The city's rising population and residents' frustration with subway delays present opportunities for the struggling taxi industry. [Crain’s New York Business]

De Blasio to parking-placard abusers: Cut it out

Mayor Bill de Blasio vowed yesterday to punish city employees who use their parking placards illegally. He said abuse of the permits, which allow workers to park near their workplace, is rampant and contributes to congestion, and to blocked crosswalks and fire hydrants. The city issued more than 50,000 new placards last week. [WNYC]

Knicks and Nets, always with the bad moves

Poor planning has once again doomed the New York Knicks and the Brooklyn Nets to atrocious records. Each of the NBA teams has sacrificed long-term prospects for quick fixes, especially in trades and player deployments, according to a Crain’s editorial. [Crain’s New York Business]

Johnson & Johnson settles with NY

Pharmaceutical giant Johnson & Johnson has agreed to pay New York state $1.3 million as part of a settlement stemming from the recall of several over-the-counter drugs. Between 2009 and 2011, a J&J subsidiary made and distributed drugs that weren't compliant with federal manufacturing guidelines. The company settled with 42 states for a total of $33 million. [Crain’s Health Pulse]

Plus: A Congressional Budget Office analysis found that the repeal of the Affordable Care Act approved by the U.S. House would leave 23 million more people uninsured. [The Wall Street Journal]

GOP mayoral hopeful pivots on immigration

State Assemblywoman Nicole Malliotakis, a Republican mayoral candidate, has moderated her stance on immigration. She once sued the city to stop it from destroying records from its municipal ID program and has supported withholding federal funds if the city does not cooperate on deportations. Malliotakis now says that New York agencies should not ask residents about their immigration status. [The New York Times]

Cerberus and American Eagle make play for Abercrombie

Cerberus Capital Management, a Manhattan-based private equity firm, is working with American Eagle on a bid for Abercrombie & Fitch. Other rival apparel companies are also pursuing Abercrombie, though Cerberus' deep pockets most likely give American Eagle an advantage. A deal for Abercrombie could come within a month. [The Wall Street Journal]

Breakaway Dem in NY Senate calls for reconciliation

State Sen. Simcha Felder, a Brooklyn Democrat who caucuses with Republicans, called on eight Democrats who compose a breakaway group also under the GOP umbrella to rejoin the fold of their party. It's not clear if Felder himself would start working with the Democrats. [The New York Times]

Plus: Democrat Christine Pellegrino's win in a special state Assembly election in a largely Republican district in Long Island has stoked Democratic enthusiasm nationwide. [The Wall Street Journal]

Advertisers dump Hannity over fake news

Cars.com, mattress company Leesa and exercise-bike maker Peloton have pulled their spots from Sean Hannity's show on Fox News because of his role in pushing a conspiracy theory that Democratic National Committee staffer Seth Rich was murdered for leaking emails. Police in Washington, D.C., say evidence indicates Rich was killed during a botched robbery. [Daily News]

Plus: DVR viewing this season propelled CBS' Late Show with Stephen Colbert ahead of Jimmy Fallon's Tonight Show on NBC. It is only the second time in 22 years that CBS has beaten NBC in the 11:30 p.m. time slot. [The New York Times]

Add finding a new Observer editor to Kushner's brief

Ken Kurson, editor of the Observer Media Group since January 2013, is leaving to take a position with management consultancy Teneo Holdings. The print run of the New York Observer ended on Kurson's watch, and an all-digital version called Observer took its place. Observer publisher Jared Kushner, a top adviser to his father-in-law, President Donald Trump, is searching for Kurson's replacement. [New York Post]

Plus: The Trump Organization said it may not be possible to fulfill its pre-inauguration promise to donate all profits from foreign patronage of Trump hotels. [The New York Times]

Shake Shack cooks up first Village location

Shake Shack has signed a 15-year lease for nearly 3,000 square feet of ground-floor space at 51 Astor Place in the East Village. It will be the chain's first location in either the West or East Village. The deal bars other burger-based spots from opening at the address. [New York Post]

Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape.